2 December 2022
As an industry association, one of our main roles is to represent the interests of members and the broader industry in Queensland. Over the last six months our policy and advocacy team has been busy lobbying government and industry regulators on the issues that matter to you.
From NCC changes to project trust accounts (PTA), the Queensland Housing Summit, the WHS review and CPD, we’ve been the industry’s voice every step of the way.
QBCC ADVOCACY NCC 2022 QLD HOUSING SUMMIT PROJECT TRUSTS MFR GOVT CONTRACTS STANDARDS DEVELOPERS HWI SCHEME UNFAIR CONTRACTS PROJECT MANAGERS COMPULSORY CPD WHS ACT
QBCC advocacy
Master Builders has established regular meetings with the Queensland Building and Construction Commission’s (QBCC) Assistant Commissioners to discuss regulation of the sector. This includes directions to rectify, unlicensed contracting, PTA audits, internal review processes and licensing application processes.
We also participated in a workshop on subcontractor accountability (defective building work) and provided scenarios for future workshops.
Letters have been sent to:
- Minister de Brenni and the QBCC's Commissioner on the QBCC’s internal review processes and ‘deemed decisions,’ requesting fairer processes for building industry participants, and ensuring extensions of the review period are sought before making a ‘deemed decision’
- The QBCC on the processes for upgrading from nominee supervisor to builder class of licence
- The Queensland Government on the core functions and activities the QBCC should focus on following the Varghese Governance Review Report.
NCC 2022
With the looming start of National Construction Code (NCC) 2022 (May 2023 for the majority of the NCC and October 2023 for the livable housing, energy efficiency and condensation provisions), we’re continuing to push for a realistic transition timeline and better implementation guidance.
Over the past six months we’ve:
- Asked the government for at least one more year and sent an open letter to the Premier and Minister de Brenni via the Courier Mail on 28 November
- Participated in the national livable housing advisory group with the government and the disability lobby to find technical fixes to the Livable Housing Standard. Additionally, we’re discussing the possibility of some Queensland fixes for the energy efficiency provisions
- Argued against the new requirements for surface drainage to floor wastes, and as the government is not prepared to back down, pushed for clear guidance information on the changes
- Requested urgently published guidance on several key areas we expect to present problems as builders need better information on how to implement the changes.
Queensland Housing Summit
Master Builders has supported the urgent call for more housing across Queensland. More housing is needed for our most vulnerable and to attract workers to build housing and infrastructure that Queenslanders need, especially in the regions.
We told government that a sustainable building industry is crucial to deliver much-needed housing and the industry is doing what it can. However:
- Material and labour shortages and price increases are pushing the price of new construction out of reach, and at the same time squeezing builders’ margins to a point where they’re not sustainable
- Significant NCC changes with insufficient transition periods and Queensland-specific requirements such as PTAs, minimum financial requirements (MFR) and outdated complex licensing constraints are combined to further add to construction costs and stress to an industry already under pressure.
Project trusts
As part of the Housing Summit advocacy, Master Builders has written to the Premier, Deputy Premier, Treasurer, Minister for Public Works and Minister for Housing requesting that PTA laws not roll out to lower-value projects in 2023.
We followed this up with a meeting with government to discuss the importance of pausing the Queensland trust account framework to assess a national approach to the security of payment in light of the Federal government’s commitment to review the Murray recommendations. The Murray review took place in 2017 and recommended a much simpler approach to the protection of subcontractor payments than the Queensland framework.
Minimum financial requirements (MFR)
Master Builders continues to advocate for a less complex and less costly approach to minimum financial requirements, in light of the recent accounting standard changes, to avoid the need for general-purpose financial statements as part of MFR reports.
This follows the Ernst & Young report, commissioned by Master Builders, which confirmed MFR requirements haven’t achieved their intended effect.
Government contracts
Master Builders has established regular meetings with the Deputy Director-General and Chief Contracts Officer, from the Department of Energy and Public Works, to discuss government building contracts and procurement.
We also wrote to the Department stressing the need for greater fairness in government contracts and procurement processes.
Free access to Australian Standards
Master Builders took the message of free access to Standards referenced in the NCC to Canberra, meeting with the CEO of the Australian Building Codes Board. We provided a paper and proposal to the national Master Builders Regulation Committee, and the national body will progress to the next steps on this important work.
Developer review
Government has released a discussion paper setting out possible options for regulating developers. Master Builders has previously submitted, and will again, that we:
- Oppose the licensing of developers via the QBCC but support accountability of developers and bans on exempt individuals.
- Support improved disclosure arrangements from a principal to a head contractor before entering a development contract.
- Oppose project trust regime, including its proposed expansion to $3 million and then $1 million commercial building contracts next year. If it is to remain, it should also apply to developers. Also tying the regulation of developers to projects requiring a PTA.
- Support education for building contractors and others in the contractual chain regarding contractual and business management practices relevant to development projects.
Read our submission to the Developer Review Panel.
Queensland Home Warranty Scheme Review
Master Builders has contributed to the Minister’s industry committee reviewing the Home Warranty Insurance scheme. As a result of our advocacy, the Department has agreed to explore the separation of insurance premiums from contract deposits.
Other initiatives being explored include:
- higher contract thresholds for when an insurance premium is required to be paid
- a prescribed claims recovery process
- increasing the default maximum compensation limits.
Read our initial submissions to the review.
Unfair contract terms
Master Builders participated in the Minister’s industry committee on Fairness in Contracting, considering whether the government should regulate prohibited or mandatory contract terms.
We provided a letter to the committee that we do not support regulating unfair contract terms at this time, because:
- the legislation only imposes an offence (and penalty) on building contractors, not other parties such as the principal under the head contract. This means that the principal does not commit an offence should they impose an unfair contract term on a head contractor.
- the committee has not adequately considered the impact of expanded Commonwealth legislation on unfair contract terms and how this might affect builders under any Queensland laws.
Project management reforms
We participated in the Minister’s industry committee looking into the licensing and role of project managers. We were vocal about the need to clearly define the roles (and boundaries) of client project managers (or superintendents) on site. Too often they overstep their role and compromise the work of the builder. It is now with the Minister to consider what will be adopted.
Compulsory Continuing Professional Development Scheme
Master Builders has continued to push for the Queensland government to introduce a compulsory continuing professional development scheme and to meet with government officials in this regard.
Government has indicated a Regulatory Impact Assessment process will occur, but not before late 2023.
Work Health and Safety Act Review
Master Builders participated in the review of the Work Health and Safety Act 2011 (Qld) and provided a submission to the review panel, arguing for no substantial changes to the work health and safety legislative framework and cautioned against any increase in red tape for the building industry.
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